Legal Definitions - insurable value

Insurable value refers to the monetary worth of the item or property that is being insured in an insurance contract. This value is used to determine the amount of coverage that is needed to protect the item or property in case of damage or loss.

For example, if a person wants to insure their car, they would need to determine the insurable value of the car. This would involve assessing the current market value of the car and factoring in any additional features or upgrades that have been added to the car. The resulting value would be the insurable value of the car.

Another example would be a homeowner who wants to insure their house. The insurable value of the house would be determined by assessing the current market value of the house, as well as any additional features or upgrades that have been added to the house. This value would be used to determine the amount of coverage needed to protect the house in case of damage or loss.

Overall, insurable value is an important concept in insurance because it helps to ensure that the item or property being insured is adequately protected in case of damage or loss.